Erase Credit Card Debt

Are you caught in the credit trap?

Credit card debt can accumulate for a number of reasons: loss of income, death in the family, medical bills, or divorce. A lot of credit card debt can be very stressful and create a financial strain on your family.  It seems like you can keep paying the minimum payment and it only pays the interest and not the principal.  Bankruptcy may be an option to consider when seeking credit card debt relief.

Do you have a high interest credit card?

Credit card interest can really make a difference in the amount owed. If you owe $10,000 on a credit card with an interest rate of 15%, and the minimum payment is $200 a month. It would take you 32 years to pay off that one card! You would end up paying over $15,580 just in interest. (Check out the Federal Reserve’s Credit Card Repayment Calculator at to find out how long it would take you to pay off your credit cards.  It is a great tool to help with a budget and to get out of debt.) If you have multiple credit cards, then it could take more than a lifetime if you only paid the minimum payments.

How can Bankruptcy help?

Filing of a bankruptcy stops all the late fees, interest, and penalties that your credit card company is charging you. The credit card company must file a proof of claim that lists the amount owed on the date of filing your case.  If you do decide to file bankruptcy, it is a good idea to stop using your credit cards.  Payments to your credit cards ninety (90) prior to your filing of your bankruptcy could be considered preferences. Plus certain charges made on your credit card prior to filing a bankruptcy could be considered nondischargeable. That means you could still owe for those charges.  It is very important to discuss all this with your attorney prior to filing bankruptcy.  If you would like to learn more about bankruptcy as an option for credit card debt relief, contact Brunson Law and schedule your free consultation today.

Debt Consolidation vs Bankruptcy

What are the differences between debt consolidation and bankruptcy?

Debt consolidation allows you to consolidate your credit card debt into one payment.  Typically a company will look at your debt, income and expenses, and create a payment plan for you. Debt consolidation will NOT include your finance companies, cash advances, medical bills, or various unsecured debt.  As you make payments to the company, they will hold the money and eventually disburse to the creditors. Creditors do not have to agree to the amount sent from the debt consolidation company.  Litigation does NOT stop. Creditors can still continue to sue you and possibly get a judgment against you.


Bankruptcy is a benefit provided to you by Federal Law. Chapter 13 bankruptcy allows you to consolidate ALL of your debt. You must list everyone you owe in a bankruptcy. You include taxes, medical bills, collections, charged off accounts, credit cards, furniture payments(not leases), car payments, mortgage arrears, finance companies, cash advances and all your unsecured debt.  You can pay back your unsecured debt as low as 1 percent. Your ability to pay is a part of how much you pay back to your unsecured debt. ALL civil litigation stops once you file. Bankruptcy creates an automatic stay that stops litigation, foreclosures, repossessions, tax garnishments, and harassing creditor phone calls!